EX-10.2 AMENDED AND RESTATED FORBEARANCE AGMT






Exhibit 10.2




AMENDED AND RESTATED FORBEARANCE AGREEMENT




     THIS AMENDED AND RESTATED FORBEARANCE AGREEMENT, dated as of August 11, 2008 (this
“Agreement”), is entered into among DWFC, LLC and Deerfield TRS (Bahamas) Ltd. (together,
the “Borrowers” and each a “Borrower”), Deerfield Capital LLC, as Originator (the
“Originator”) and as Servicer (the “Servicer”), each of the Conduit Purchasers, the
Institutional Purchasers (collectively, and together with the Swingline Purchaser (as defined
below), the “Lenders”) and the Purchaser Agents from time to time party to the Sale and
Servicing Agreement referenced below, Wachovia Bank, National Association, as Swingline Purchaser
(the “Swingline Purchaser”), and Wachovia Capital Markets, LLC, as Administrative Agent
(the “Administrative Agent”). Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Sale and Servicing Agreement (as defined below).



RECITALS




     WHEREAS, the Borrowers, the Originator, the Servicer, the Lenders, the Purchaser Agents, the
Swingline Purchaser, the Administrative Agent, Lyon Financial Services, Inc. (d/b/a/ U.S. Bank
Portfolio Services), as Backup Servicer (the “Backup Servicer”), U.S. Bank National
Association, as Collateral Custodian (the “Collateral Custodian”) and the Hedge
Counterparty have entered into that certain Sale and Servicing Agreement dated as of March 10, 2006
(as amended prior to the date hereof, the “Sale and Servicing Agreement”).



     WHEREAS, as of the required reporting date for the fiscal quarters ending as of March 31, 2008
and June 30, 2008 (pursuant to Section 6.10(d) of the Sale and Servicing Agreement), Deerfield
Capital LLC failed to maintain stockholder’s equity of $240,000,000 plus 90% of the proceeds raised
from equity issuers, which constitutes a Servicer Default under Section 6.15(j) of the Sale and
Servicing Agreement (and, accordingly, a Termination Event under Section 10.1(d) of the Sale and
Servicing Agreement (the “Acknowledged Termination Event”).



     WHEREAS, the Borrowers, the Originator and the Servicer (collectively, the “Loan
Parties”) have requested, and the Administrative Agent and the Lenders have, pursuant to a
Forbearance Agreement dated as of May 12, 2008 (the “Original Agreement”), agreed to a
request by the Loan Parties to (i) forbear from exercising certain rights and remedies arising from
the Acknowledged Termination Event, (ii) forbear from exercising any right to terminate the rights
and obligations of the Servicer arising from the Acknowledged Termination Event and (iii) waive
application of the Concentration Limits set forth in clause (a) of the definition of “Concentration
Limits” in each case, during the Forbearance Period.



     WHEREAS, Variable Funding Capital Company LLC has assigned its interest in all Advances made
by it under the Sale and Servicing Agreement to Wachovia Bank, National Association, as a Liquidity
Bank, pursuant to Section 13.16 of the Sale and Servicing Agreement.



     WHEREAS, the Loan Parties, the Administrative Agent and the Lenders have agreed to amend the
Original Agreement pursuant to the terms set forth herein.



 









 





     NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:



AGREEMENT




     1. Estoppel, Acknowledgement and Reaffirmation. The Loan Parties hereby acknowledge
their obligations under the respective Transaction Documents to which they are party and reaffirm
that each of the liens and security interests created and granted in or pursuant to the Transaction
Documents is valid and subsisting and that this Agreement shall in no manner impair or otherwise
adversely effect such liens and security interests.



     2. Forbearance. Subject to the terms and conditions set forth herein, the
Administrative Agent and the Lenders agree that they shall, during the Forbearance Period (as
defined below), (i) forbear from exercising any and all rights or remedies available to them under
the Sale and Servicing Agreement, the other Transaction Documents and Applicable Law as a result of
the Acknowledged Termination Event, but only to the extent such rights or remedies arise
exclusively as a result of the Acknowledged Termination Event, (ii) waive the requirement to
maintain stockholder’s equity in the amount set forth in Section 6.15(j) of the Sale and Servicing
Agreement and (iii) waive application of the Concentration Limits in computing the Borrowing Base;
provided that the Administrative Agent and the Lenders shall be free to exercise any or all of
their rights and remedies arising on account of the Acknowledged Termination Event and the limited
waiver described in clauses (ii) and (iii) above shall terminate and all
Concentration Limits shall be applied, at any time upon or after the end of the Forbearance Period
(as defined below).



     3. Forbearance Termination Events. Nothing set forth herein or contemplated hereby is
intended to constitute an agreement by the Administrative Agent or the Lenders to forbear from
exercising any of the rights available to them under the Sale and Servicing Agreement, the other
Transaction Documents, or Applicable Law (all of which rights and remedies are hereby expressly
reserved by the Administrative Agent and the Lenders) upon or after the occurrence of the end of
the Forbearance Period. As used herein, a “Forbearance Termination Event” shall mean the
breach of any of the obligations set forth in Section 4 hereof or the occurrence of any
Termination Event other than the Acknowledged Termination Event. The “Forbearance Period”
shall be the period from, and including, the date hereof to (but excluding) the earliest to occur
of:




     (a) if the ratio (expressed as a percentage) of (i) the Advances Outstanding at the
close of business on each “Target Date” specified in the table below to (ii) the sum of (A)
the Borrowing Base (after giving effect to the waiver of the application of the
Concentration Limits) calculated at the close of business on such Target Date (including (x)
60% of the Outstanding Loan Balance as of such Target Date due from Synventive Acquisition
Inc. and (y) until the Loan to Medical Media Partners returns to compliance with its
applicable Loan-to-Value Ratio, 0% of the Outstanding Loan Balance as of such Target Date
due from Medical Media Partners) plus (B) Collections received but not applied to the
reduction of the Advances Outstanding as of the close of business on such



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Target Date (the “Leverage Ratio”) is greater than the corresponding “Target
Percentage” specified in the table below, such Target Date:



	 	 	 
	Target Date	 	Target Percentage
	 	 	 
	August 15, 2008
	 	52%
	 	 	 
	September 15, 2008
	 	50%
	 	 	 
	October 31, 2008
	 	40%
	 	 	 
	November 30, 2008
	 	25%
	 	 	 
	December 31, 2008
	 	0%







     and




     (b) the date on which a Forbearance Termination Event occurs.



     4. Further Obligations. During the Forbearance Period,




     (a) the Servicer shall use commercially reasonable efforts to provide to the
Administrative Agent, upon request, all information regarding each Eligible Loan in the
Collateral (including, without limitation, the most recent credit analysis of each Obligor
with respect to such Eligible Loan);




     (b) unless the Administrative Agent shall otherwise consent in writing, such consent
not be unreasonably withheld, none of the Loan Parties shall effect a sale, assignment,
transfer or other conveyance of any part of the Collateral (a “Transfer”) that
would, after giving effect to such Transfer, cause the ratio (expressed as a percentage) of
(i) Advances Outstanding to (ii) the sum of (A) the Borrowing Base (including (x) 60% of the
Outstanding Loan Balance due from Synventive Acquisition Inc. and (y) until the Loan to
Medical Media Partners returns to compliance with its applicable Loan-to-Value Ratio, 0% of
the Outstanding Loan Balance due from Medical Media Partners), plus (B) Collections and the
proceeds of such Transfer received but not applied to the reduction of Advances Outstanding
to exceed, for a period of more than ten (10) Business Days (subject to extension at the
Administrative Agent’s discretion, but in any case without limiting the effect of
Section 3(a) hereof), such ratio as computed immediately prior to the date of such
Transfer; and




     (c) the Loan Parties will:




     (i) ensure that, as a result of any Eligible Loans in the Collateral failing on
any Measurement Date to satisfy the requirements set forth in the definition of
“Eligible Loan” in the Sale and Servicing Agreement, the Leverage Ratio shall not
exceed, for a period of more than ten (10) Business Days (subject to extension at
the Administrative Agent’s discretion, but in any case without



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limiting the effect of Section 3(a) hereof) the Leverage Ratio as
computed immediately prior to such Measurement Date; and




     (ii) with respect to the waiver or amendment (including, without limitation,
pursuant to a Material Modification) of the material terms of an Eligible Loan in
the Collateral (A) if the Target Percentage is 40% or less, provide written notice
to the Administrative Agent of any such waiver or amendment promptly upon becoming
aware thereof and (B) if the Target Percentage exceeds 40%, provide, not later than
five (5) Business Days prior to the effective date of such waiver or amendment,
written notice to the Administrative Agent of such waiver or amendment along with
the Servicer’s recommendation for approval or rejection of such waiver or amendment,
as applicable, and the Administrative Agent shall determine, in its reasonable
judgment, if such waiver or amendment, as applicable, is commercially reasonable and
consistent with industry practice, in each case, giving consideration to the
creditworthiness of the related Obligor and current market conditions. The
Administrative Agent shall use reasonable efforts to deliver its approval or
rejection of such waiver or amendment, as applicable, within four (4) Business Days
of receipt of such notice. If the Administrative Agent approves such waiver or
amendment, as applicable, the relevant Loan Party may approve or consent to such
waiver or amendment, as applicable. If the Administrative Agent rejects such waiver
or amendment, as applicable, the relevant Loan Party shall not approve or consent to
such waiver or amendment, as applicable. For the avoidance of doubt, a waiver or
amendment (including, without limitation, pursuant to a Material Modification) of
the material terms of an Eligible Loan in the Collateral that the Administrative
Agent rejects and that is consented to or approved by the lenders party to such
Eligible Loan other than a Loan Party shall not be a Forbearance Termination Event.



     5. Cure. The Loan Parties may cure any breach of Sections 4(b) or
4(c)(i) by depositing cash in the Collection Account or providing to the Administrative
Agent and the Collateral Custodian signed copies of all documentation evidencing a sale of one or
more Loans, which shall (or, in the case of a Loan sale, the cash proceeds of which shall) be
sufficient to cause the Leverage Ratio to comply with the levels specified in Sections 4(b)
or 4(c)(i), as applicable.



     6. Effectiveness. This Agreement shall be effective as of the date when the following
conditions shall have been satisfied in form and substance satisfactory to the Administrative Agent
shall have received executed counterparts hereto.



     7. Representations of Loan Parties. Each of the Loan Parties represents and warrants
as follows:




     (a) It has taken all necessary action to authorize the execution, delivery and
performance of this Agreement.



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     (b) This Agreement has been duly executed and delivered by such Person and constitutes
such Person’s legal, valid and binding obligation, enforceable in accordance with its terms,
except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization,
fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights
generally and (ii) general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity).




     (c) No consent, approval, authorization or order of, or filing, registration or
qualification with, any court or governmental authority or third party is required in
connection with the execution, delivery or performance by such Person of this Agreement.




     (d) The execution and delivery of this Agreement does not (i) violate, contravene or
conflict with any provision of its organization documents or (ii) violate, contravene or
conflict with any laws applicable to it or any of its Subsidiaries.




     (e) Immediately after giving effect to this Agreement, (i) the representations and
warranties of the Loan Parties set forth in the Transaction Documents shall be true and
correct in all material respects (except that the representation as to no existence of a
Termination Event or Potential Termination Event is hereby made subject to the Acknowledged
Termination Event) and (ii) no Potential Termination Event or Termination Event (other than
the Acknowledged Termination Event) shall have occurred or be continuing.



     8. Reference to and Effect on Transaction Documents. Except as specifically modified
herein, the Transaction Documents shall remain in full force and effect. The execution, delivery
and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of
the Lenders, the Swingline Purchaser, the Collateral Agent, the Backup Servicer, or the
Administrative Agent under any of the Transaction Documents, or constitute a waiver or amendment of
any provision of any of the Transaction Documents, except as expressly set forth herein. Any
breach of the terms of this Agreement shall constitute a Termination Event under the Sale and
Servicing Agreement, and this Agreement shall constitute a Transaction Document.



     9. Further Assurances. Each of the parties hereto agrees to execute and deliver, or
to cause to be executed and delivered, all such instruments as may reasonably be requested to
effectuate the intent and purposes, and to carry out the terms, of this Agreement.



     10. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).



     11. Release. As a material part of the consideration for Administrative Agent and the
Lenders entering into this Agreement, the Loan Parties agree as follows (the “Release
Provision”):



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     (a) Release and Discharge. Each Loan Party hereby releases and forever
discharges the Administrative Agent and the Lenders and their respective predecessors,
successors, assigns, officers, managers, directors, shareholders, employees, agents,
attorneys, representatives, parent corporations, subsidiaries, and affiliates (the
“Lender Parties”) jointly and severally from any and all claims, counterclaims,
demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities,
accounts, offsets, rights, actions and causes of action of any nature whatsoever, including,
without limitation, all claims, demands, and causes of action for contribution and
indemnity, whether arising at law or in equity, presently possessed, whether known or
unknown, whether liability be direct or indirect, liquidated or unliquidated, presently
accrued, whether absolute or contingent, foreseen or unforeseen, and whether or not
heretofore asserted, which such Loan Party may have or claim to have as of the date of this
Agreement against any Lender Party in any way related to the Transaction Documents.




     (b) Covenant Not to Sue. Each Loan Party agrees not to sue any Lender Party or
in any way assist any other person or entity in suing any Lender Party with respect to any
claim released herein. The Release Provision may be pleaded as a full and complete defense
to, and may be used as the basis for an injunction against, any action, suit, or other
proceeding which may be instituted, prosecuted, or attempted in breach of the release
contained herein.




     (c) Representations and Warranties. Each Loan Party hereby acknowledges,
represents and warrants to each Lender Party that:




     (i) Such Loan Party has read and understands the effect of the Release
Provision. Such Loan Party has had the assistance of independent counsel of its own
choice, or has had the opportunity to retain such independent counsel, in reviewing,
discussing, and considering all the terms of the Release Provision; and if counsel
was retained, counsel for such Loan Party has read and considered the Release
Provision and advised such Loan Party to execute the same. Before execution of this
Agreement, such Loan Party has had adequate opportunity to make whatever
investigation or inquiry it may deem necessary or desirable in connection with the
subject matter of the Release Provision.




     (ii) Such Loan Party has executed this Agreement and the Release Provision
thereof as its free and voluntary act, without any duress, coercion, or undue
influence exerted by or on behalf of any person.




     (d) Consideration. Such Loan Party understands that the Release Provision was
a material consideration in the agreement of the Administrative Agent and the Lenders to
enter into this Agreement.




     (e) Broadly Construed. It is the express intent of such Loan Party that the
release and discharge set forth in the Release Provision be construed as broadly as possible
in favor of the Administrative Agent and the Lenders so as to foreclose forever the
assertion by such Loan Party of any claims released hereby against the Administrative Agent
and the Lenders.



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     12. Miscellaneous.




     (a) Section headings in this Agreement are included herein for convenience of reference
only and shall not constitute a part of this Agreement for any other purpose.




     (b) This Agreement may be executed in any number of separate counterparts, each of
which shall collectively and separately constitute one agreement. Delivery of an executed
counterpart of this Agreement by facsimile shall be effective as an original and shall
constitute a representation that an original shall be delivered to the Administrative Agent.



     13. Entire Agreement. This Agreement and the other Transaction Documents embody the
entire agreement between the parties and supersede all prior agreements and understandings, if any,
relating to the subject matter hereof. This Agreement and the other Transaction Documents
represent the final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties.



[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]




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     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.



	 	 	 	 	 
	BORROWER: 	DWFC, LLC,

as a Borrower

	 
	 
	 	By:  	/s/ Frederick L. White
 	 
	 	 	Name:  	Frederick L. White 	 
	 	 	Title:  	Senior Vice President, General Counsel

and Secretary 	 
	 
	BORROWER:                          	DEERFIELD TRS (BAHAMAS) LTD., as a Borrower

 	 
	 	By:  	/s/ Frederick L. White
 	 
	 	 	Name:  	Frederick L. White 	 
	 	 	Title:  	Senior Vice President, General Counsel

and Secretary 	 
	 
	THE ORIGINATOR:               	DEERFIELD CAPITAL LLC,

as the Originator

 	 
	 	By:  	/s/ Frederick L. White
 	 
	 	 	Name:  	Frederick L. White 	 
	 	 	Title:  	Senior Vice President, General Counsel

and Secretary 	 
	 
	THE SERVICER:            	DEERFIELD CAPITAL LLC,

as the Servicer

 	 
	 	By:  	/s/ Frederick L. White
 	 
	 	 	Name:	Frederick L. White
	 
	 	 	Title:  	Senior Vice President, General Counsel

and Secretary 	 



[Signatures Continued on the Following Page]




 









 








	 	 	 	 	 
	THE SWINGLINE PURCHASER:       	WACHOVIA BANK, NATIONAL

ASSOCIATION, as the Swingline Purchaser

 	 
	 	By:  	/s/ Mike Romanzo
 	 
	 	 	Name:  	Mike Romanzo 	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	INSTITUTIONAL PURCHASER:          	WACHOVIA BANK, NATIONAL

ASSOCIATION, as Institutional Purchaser

 	 
	 	By:  	/s/ Mike Romanzo
 	 
	 	 	Name:  	Mike Romanzo 	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	THE ADMINISTRATIVE AGENT:       	WACHOVIA CAPITAL MARKETS, LLC, as

Administrative Agent

 	 
	 	By:  	                                          /s/ Kevin Sunday
 	 
	 	 	Name:  	Kevin Sunday 	 
	 	 	Title:  	Vice President